Ag in the AM: Farmland Prices Surge in Iowa, Illinois
KANSAS CITY, Missouri – Farmland value continues to skyrocket but it may be slowing down in the months ahead.
The Federal Reserve Bank of Kansas City says the price of Iowa farmland rose 27-percent over the past year. In Illinois it’s a 20-percent hike in prices.
The Federal Reserve also reports the cost to rent farmland is 17-percent higher than a year ago.
Income from higher prices for corn, soybeans, and hay is driving those prices higher. The Fed also says low interest rates should continue to work in farmer’s favor but with commodities falling, analysts predict farm value increases will grow more slowly.
The Federal Reserve report also indicates loans to buy farm machinery and to build grain storage is expected to rise this quarter.